CONSOL Energy’s debt
As of September 30, 2015, CONSOL Energy’s (CNX) total debt stood at ~$3.7 billion. With ~$83 million in cash and cash equivalents, CNX’s net debt was ~$3.6 billion at the end of 3Q15.
CNX’s net debt to EBITDA
Net debt to EBITDA is a debt ratio that shows how many years it would take for a company to pay back its debt under the current situation. As seen in the above chart, as of 3Q15, CNX’s net debt to EBITDA is quite high at ~4.6x. Even when compared to its own net debt to EBITDA historical average of ~4.1x, its current net debt to EBITDA is higher. The increase in the net-debt-to-EBITDA ratio in the last two quarters can be attributed to the increase in net debt as well as the falling EBITDA due to lower commodity prices.
In 2Q15, CNX reported a significant one-time charge of ~$849 million related to the impairment of its proved reserves. Excluding this one-time charge, the 2Q15 adjusted EBITDA comes around ~$180 million. The green bar in the above chart shows the net-debt-to-EBITDA ratio calculated using these adjusted EBITDAs in trailing-12-month EBITDA calculations.
CNX’s leverage in 3Q15
Another metric to gauge a company’s indebtedness is the debt-to-equity ratio. As of 3Q15, CNX had a debt-to-equity ratio of ~76%, which is in the middle of the range when compared with other upstream companies within the S&P 500 (SPY). Range Resources (RRC), EQT (EQT), and Cimarex Energy (XEC) have debt-to-equity ratios of ~116%, ~43%, and ~44%, respectively. A higher debt-to-equity ratio usually indicates higher risk, as it indicates that a company has been aggressively financing its growth through debt.